69300
                             KOSOVO: COUNTRY PARTNERSHIP STRATEGY

                                                           CHAIR’S SUMMING UP

                                                Meeting of the Executive Directors

                                                               May 29, 2012


       Executive Directors discussed the joint IDA/IFC/MIGA Kosovo Country
Partnership Strategy (CPS) for FY12-15  (IDA/R2012-0126[IFC/R2012-0140;
MIGA/R2012-0024]). Some Directors wished that their reservation with respect to the
Kosovo CPS be recorded in the Minutes.

        Directors commended the Kosovo authorities for the progress made since mid-
2011 in re-establishing a sustainable medium-term macroeconomic framework. Directors
noted the important steps taken by the Government to contain public sector wage and
social security spending, while exploring PPP approaches to reduce the public cost of
important infrastructure investments. Directors cautioned that continued prudence in
economic policy was advisable given ongoing risks in the outlook.         They urged
authorities to focus attention on addressing high unemployment and poverty rates, while
ensuring progress toward reducing gender gaps.

        Directors broadly supported the CPS and its selective focus to accelerate broad-
based economic growth and employment generation and to improve environmental
management. In this context, Directors appreciated the focus of the CPS on helping
Kosovo address its severe electricity constraints with a view to balancing the objectives
of energy security, energy affordability, and minimal socio-environmental externalities.
In this regard, Directors emphasized the importance of taking full account of
environmental considerations, mitigating risks and impacts, and observing all Bank
Group safeguard policies. Directors welcomed the efforts undertaken to minimize the
need for coal-fuelled power, expressing fullest support for proposed CPS investments in
energy efficiency and in renewable energy.

        Overall, Directors noted that the proposed strategy is balanced, with substantial
attention paid to establishing a strengthened legal and institutional framework for
sustainable employment and new investments in education, environment, and water.
They also encouraged continuing attention to governance and capacity through the
recently launched Public Sector Modernization project and ongoing support for improved
public sector procurement and financial management.

       Directors appreciated the extensive consultations with respect to this CPS,
including consultations with civil society. The close collaboration with other multilateral
and bilateral donors in developing this strategy was also noted. They encouraged
continued close cooperation between the World Bank Group and international
development partners – to support Kosovo’s efforts to increase domestic productivity and
improve the business climate.

                                                        

 This summary is not an approved record.